That offering price is below Tuesday’s closing price of $36.59 a share.

Exact has been a controversial name. The company’s test for colorectal cancer has gained traction, and the stock price has responded by climbing more than 400% over the past 12 months. But last month, Citron Research made a bearish call, predicting that the stock could fall $20 a share in the short term.

Announced late Thursday, the stock offering of 84 million shares was priced at $9.65 per share (a 7.4% discount to Thursday’s closing price). And the company says it will have more than $2 billion in cash at year end.

But some Wall Street pros were left scratching their heads. The media had widely reported early Thursday that CEO Mike Ullman didn’t see conditions for the rest of the year where the department store chain would need to raise capital.

J.C. Penney has seen some improvement in sales. But critics worry about the road ahead. Earlier this week, the credit research group at Goldman Sachs offered a bearish view of the retailer’s prospects, and a Citigroup analysts cut herprice target from $11 to $7. Adding to worries is a downbeat outlook for the broader retail industry.

All of the signs since August tell you that the company is underperforming and their margins haven’t bottomed yet. The concern now is what will happen if these trends continue, and I think they will, as the company enters 2014…You are still looking at a J.C. Penney that is burning through cash and will have no other external ways of raising more. No one expects great holiday sale. In that sort of environment, how will a struggling J.C. Penney do?

Down more than 9% in Friday afternoon market action, J.C. Penney trades at $9.48.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.